Mohammed Abusharbeh and Esraa N. Zakarneh
The aim of this research is to detect the possibility of distortion of annual reports for non-financial listed firms at Palestine Exchange (PEX). It validates the effectiveness of…
Abstract
Purpose
The aim of this research is to detect the possibility of distortion of annual reports for non-financial listed firms at Palestine Exchange (PEX). It validates the effectiveness of Beneish model in detecting earnings management (EM) using panel regression estimates.
Design/methodology/approach
The methodology of this study is based on secondary data that were collected from the audited annual reports of non-financial listed firms for the period 2016–2022. Fixed-effects model and two steps generalized method of methods (GMM) estimator were used to conduct research findings.
Findings
The results validate the efficiency of Beneish model in detecting EM. The variables of sales overstating, accruals and leverage have leading items of earnings manipulation in case of Palestinian listed firms. However, collection period, gross margin, assets utilization, running expenses and firm size are not effective in predicting the distortion of financial reporting.
Practical implications
Corporate managers are suggested to control the leverage in order to reduce accrual EM and avoid making discretionary accruals (DA) choices to depress EM.
Originality/value
These findings contribute to the policy makers in Palestine by ensuring that financial reports accurately reflect the company’s current situation and is free from earnings manipulation, which would have several research implications in theory and practice.
Details
Keywords
The purpose of this study is to examine the influence of knowledge creation (KC) process on customer relations management (CRM) in Palestinian commercial banks, taking into…
Abstract
Purpose
The purpose of this study is to examine the influence of knowledge creation (KC) process on customer relations management (CRM) in Palestinian commercial banks, taking into consideration which factors of KC process support the CRM system.
Design/methodology/approach
The study uses a quantitative research design wherein questionnaires have been used to collect data from 345 respondents in the Palestinian banking sector. Research hypotheses have been tested using multiple regression analysis.
Findings
The findings unveil that socialisation and combination processes have a positive impact on CRM. In contrast, internalisation process negatively affects CRM system, but outsourcing knowledge does not significantly affect CRM.
Research limitations/implications
Past studies empirically validated the success of CRM adaptation in the context of different industries. This study provides a new conceptual model which validates the influence of KC on CRM in the banking sector. It also affirms the integral role of KC in supporting CRM from an emerging country perspective like Palestine.
Practical implications
This study offers new insights into creating of knowledge by employees in supporting CRM. It will encourage future scholars to further explore the key dimensions of the KC process for a more detailed investigation at a workplace. This study suggests that banks’ directors and employees should behave in a social manner to support relationship with customers. This study also suggests facilitating knowledge from different resources in innovative ways, through encouraging creative thinking from experiences, using technology in sharing knowledge, focussing on appropriate training to resolve customers' problems and disseminating new knowledge among employees.
Originality/value
This study expands the body of knowledge on KC process in supporting CRM from an emerging country perspective. This study validates the influence of KC on CRM in the Palestinian banking sector. This sheds light on the integration of these two concepts.